CJ CheilJedang will operate its North American business under one company, making its two separate U.S. subsidiaries swap shares and become one.
CJ America, wholly owned by CJ CheilJedang, will give its entire 100 percent stake in CJ Foods USA to Schwan’s Company. In exchange, Schwan’s Company will issue new shares and give them to CJ America.
Following the share swap, Schwan’s Company — 70 percent owned by CJ CheilJedang — will wholly own CJ Foods USA and become the main company in charge of the North American business.
When the share swap will be completed wasn’t disclosed as local laws in the United States don’t require companies to disclose such information.
The two companies have been in charge of separate sections of CJ CheilJedang’s food business in North America. Schwan’s Company has been selling frozen food such as pizza and other food products such as Bibigo dumplings and microwavable rice were sold under CJ Foods USA.
CJ CheilJedang said in a statement Thursday that the decision was made to “enhance the competitiveness of its North American food business” and that the change is “expected to make the overall decision-making processes of the two businesses faster.”
With CJ Foods USA becoming a wholly owned subsidiary of Schwan’s Company, the two will work together for marketing, mapping out business plans together, and using each other’s infrastructure.
BY LEE TAE-HEE [firstname.lastname@example.org]